Some business entrepreneurs think that only the big-scale multinational companies need identity verification systems or services, the consideration being small businesses do not have as many transactions as giant companies.
And as such, they will not be targeted by criminals for fraud or identity theft. Where identity authentication ie KYC Compliance is required for any business engaged in e-commerce or any form of commercial activity, the scale of business activity is less of an issue to cybercriminals. To the criminals, any business regardless of size or scale is a cash-generating machine.
The need for identity verification for every business, big or small, is dictated by the fact that online identities are not accurately true and real. If there is no way to verify the identity of say, the account holder, and Dick and Jane can pose as the account holder and run away with purchases that are not authorized by the genuine account holder. This is why businesses with online activities have to invest a sizeable amount in keeping a highly secure and reliable identity authentication protocol to ensure the veracity and genuineness of any transaction made.
In the absence counter checking or validation of identity, businesses are allowing criminals to feast on the vast information they can gain unauthorized access to, leading to increasing cases of fraud and identity theft. Businesses should be conscious of the need to protect customers' information as well as the information of the business. Identity theft for that matter does not only target the consumers but the business entities as well.